ACC net profit plunges 92% to ₹93 crore on higher cost, lower sales

What happened

ACC, an Adani Group company, reported a 92 per cent fall in September quarter net profit to ₹93 crore from ₹1,119 crore a year earlier, on higher costs and lower sales. Revenue fell 5 per cent to ₹5,666 crore.

Confirmed

Global impact / market context

Much of the profit drop reflects a ₹659 crore income-tax provision reversal in the year-ago quarter, so the comparison overstates the operating decline. Still, EBITDA, a rough measure of operating profit, more than halved, showing higher costs and lower sales squeezed earnings.

Analyst inference

Sales volume fell to 9.7 million tonnes after the master supply agreement with parent Ambuja Cements redirected business. Realisation per tonne, which means the average sales price per tonne, fell to ₹414 from ₹849. Management says reported figures are not directly comparable.

Analyst inference

What to watch

1. Watch whether sales volume recovers after the monsoon, since ACC's CEO expects industry demand to strengthen on housing, infrastructure, and capital expenditure, which means spending on long-term assets. Confirmed
2. Track realisation per tonne of ₹414 against costs; lower prices per tonne with flat costs would keep pressuring profit, while improving pricing momentum could ease the squeeze ACC's CEO describes. Analyst inference
3. Monitor green power usage, which rose to 34 per cent from 30 per cent; higher use could lower energy costs over time, though the article does not quantify savings or give a timetable. Proposed

Evidence

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